The need for the passage of the Petroleum Industry Bill (PIB) has now become more expedient than ever. This is so because according to the Minister of Petroleum Resources, Mrs Diezani Madueke, the U.S. has finally stopped the importation of Nigeria’s crude oil and gas.
With this development, Nigeria is already seeking new markets to augment her sales. Stakeholders in the industry are mounting pressure on the National Assembly to pass the bill before the expiration of the present session.
Speaking at the Interactive Enlightenment Workshop on PIB organised by the Unite Consult Limited in Abuja, the Vice-President, Nigeria Labour Congress (NLC) Comrade Issa Aremu cautioned the National Assembly not to test the temperament of the Nigerian workers with the continued delay of passage of the bill. The labour admonished the lawmakers not to wait till NLC pickets them before the passage. Should the lawmakers fail to pass the bill before the next general elections, all the efforts at lobbying for the passages would result in nothing. Therefore, he vowed that “we shall add our voices to already existing mass pressure. Don’t forget that there has been a series of demonstrations by the non-governmental organisations. NLC will add its voice to ensure that PIB becomes a law.”
Aremu who enumerated the benefits inherent in the bill for the workers, also told the stakeholders at the workshop that the bill is one of the progressive laws that the ongoing democracy can give the citizens. He, told the chairman, House Committee on Petroleum (Downstream), Hon. Dakuku Peterside that the National Assembly should not wait for it to be picketed over the issue. “It is good that chairman House Committee on Petroleum (Downstream) is here. I think they will not wait for us to picket them before they can pass this bill,” he said.
Giving a breakdown of what the workers would gain from the bill, the NLC Vice President noted that it could culminate in the creation of fresh 19 companies from the unbundling of the Nigeria National Petroleum Corporation (NNPC). He was elated about the bill, which according to him, has made provision for local content. In other words, the PIB will lead to the engagement of Nigerians from different professional background. With that provision, he maintained that “Local content means we must have the value for Nigerians to operate the sector instead of being dominated by foreigners. So, any law that will engage Nigerian technicians and accountants is a progressive law. We will support it as much as possible. “
One may ask what the PIB seeks to achieve. The issue of PIB commenced in 2007 following the recommendations of a Presidential Committee set up to carry out oil and gas reforms in Nigeria aimed at making Nigeria become one of the most industrailised nations in the world by the year 2020. However, for the country to accomplish this tall dream, it was envisaged that the major source of revenue to the Federation account, (the oil and gas sector) must be re-positioned for greater efficiency, openness, and global competitiveness.
The bill was designed to strengthen the capacity of indigenous Nigeria companies in the oil and gas sector to compete with international companies in search and acquisition of hydrocarbons in the Nigeria. The measure was also intended reduce exploitation in the sector and limit, to the barest minimum, Federal Government’s exposure to oil and gas exploration and production through venture operations.
Given the controversy over the former PIB, the process started afresh and a new PIB was presented to the National Assembly by the Executive arm of government on 18 July, 2012 for consideration and passage into law. The 2012 bill has been adjudged to be one of the most important legislative bills in the history of the country due to the critical role of the petroleum sector in the Nigeria’s economy.
The objectives of the PIB are to create a conducive business environment for petroleum operations, enhance exploration and exploitation of petroleum resources in Nigeria for the benefit of the Nigeria people. Besides, the bill is to optimise domestic gas supplies, particularly for power generation and industrial development. It is to establish a progressive fiscal framework that encourages further investment in the petroleum industry while optimizing revenues accruing to the government among other objectives.
In terms of structure, the PIB provides for the establishment of nine agencies that will be answerable to the Minister of Petroleum Resources. The minister shall be responsible for the co-ordination of the activities of the petroleum industry and shall exercise general supervision over all operations and all institutions and all institutions in the industry. The nine agencies will comprise of two regulatory agencies, three funds, three commercial companies and one technical and support bureau.
From the lawmakers’ point of view, it was evident that the bill would do Nigeria a lot of good. Peterside , who spoke at the workshop said although the bill will not solve all the problems in the country, it is tailored to tackle of corruption, the the virus in the industry. According to the chairman, should the PIB become a law, it would tackle the perennial environmental challenges in the Niger Delta- the base of oil production in Nigeria. He announced that three years after the passage of the bill, gas flaring that has been the major environmental threat to lives and the flora and fauna of the oil producing states will become history consequent upon the implementation of the law.
There have however been questions about what is responsible for the delay of the bill. Peterside thus explained that although it has passed second reading in the two chambers of the National Assembly, the lawmakers want take time to do a thorough job. He added that since the bill concerns the economic mainstay of the country, the National Assembly would not want to commit grave mistakes and re-present it for amendment so soon.
Represented by the Group Executive Director ( GED) Corporate Strategy and Planning, Dr. Timothy Okon, the minister reminded the stakeholders that should the National Assembly now fail to pass the PIB all the efforts of the present administration will be in vain.
She announced to Nigerians that the country is in urgent need of the commercialisation and liberalisation of the petroleum sector. With a voice laden with concern, she announced that the U.S .which used to be the major importer of Nigeria’s crude oil has finally exited the market as a result of her development of Shale oil and gas. Therefore, the nation has to make haste to bridge the huge revenue gap the U.S. withdrawal has created. Madueke however revealed that Nigeria has begun the search for a fresh market for her crude oil. The minister urged the country to adopt sustainable economic policies in line with the changes of global economy. The minister who sought the speedy passage of the bill insisted that the situation at hand calls for the change of present policies which may cause future economic stress no matter how dearly Nigerians hold them. Her words: “The global economy is changing and Nigeria must adopt sustainable economic strategy. I know many of you must have heard the Shale gas and the Shale oil revolution. This has literally knocked-out Nigeria from the export to the U.S. So, Nigeria must adapt. We must change our ways and policies that we may hold dear which may cause us economic stress in the future. So this market they call the Shale oil and gas has resulted in Nigeria seeking new markets for its oil.”
Madueke called for competitiveness in the sector, noting that there is need for new policies for strengthening the industry. The minister also urged Nigeria to look beyond oil and consider the importance of natural resources in economic transformation. She insisted that the time to diversify the country’s economy is now. While making a case for the passage of the PIB, the minister explained that the country expects to attain a vibrant economy from its initiatives such as gas price reform, gas commercialisation, gas infrastructure framework and others policies that are enshrined in the bill.
Like Aremu, Mrs. Madueke noted that in terms of job creation, it is hoped that the bill would restore Nigeria’s industrial capacity by providing employment opportunities for all.
The continuous delay of the passage has however cast some fears among the stakeholders. As a result of the unanimous worry over the non- passge of the bill before the end of the current session of the National Assembly, Aremu said he was giving the lawmakers the benefit of the doubt about the realization of the law. The NLC Vice President said he was still hopeful that this session of the National Assembly will pass it into law because the Speaker of the House of Representatives, Hon. Aminu Tambuwal has “promised that by the end of this year the bill will become a reality.”
Thus, the National Assembly has less that a year to make or mar the PIB.
